Earnings Tax Return Submitting FY 2024-25: The Earnings Tax Division has issued ITR kind 3, relevant for people and HUFs incomes revenue via enterprise or skilled actions. The announcement was made through X platform on Thursday evening, confirming that ITR-3 for Evaluation 12 months 2025-26 was formally notified on April 30.
What’s new in ITR-3?
A big change consists of the rise within the reporting threshold for belongings and liabilities below ‘Schedule AL‘ from Rs 50 lakh to Rs 1 crore, offering aid to middle-income taxpayers via lowered disclosure necessities.
The ITR’s Schedule Capital Positive aspects part now requires separate reporting of capital positive aspects primarily based on their incidence, whether or not earlier than or after July 23, 2024.
Following the Funds presentation on July 24, 2024, the administration proposed decreasing long-term capital positive aspects tax on property to 12.5 per cent with out indexation advantages, down from the earlier 20 per cent price with indexation.
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The indexation profit permits taxpayers to calculate property price costs while accounting for inflation.
This revision permits people or HUFs who acquired properties earlier than July 23, 2024, to decide on between two choices: both pay LTCG tax at 12.5 per cent with out indexation or proceed with the present system of 20 per cent tax with indexation advantages.
AKM International’s Associate-Tax, Sandeep Sehgal highlighted that the CBDT has applied vital modifications to ITR Type 3 for Evaluation 12 months 2025-26, simplifying the compliance course of for people and Hindu Undivided Households incomes revenue from enterprise or skilled actions.
“Dropdowns for deductions like Part 80C and section-wise TDS reporting have additionally been launched, enhancing transparency, accuracy, and ease of submitting. Total, these adjustments replicate the CBDT’s ongoing efforts to advertise ease of compliance, enhance knowledge accuracy, and align reporting with rising coverage developments,” Sehgal added.
On April 29, the authorities introduced ITR varieties 1 and 4 for evaluation yr 2025-26, simplifying the submitting course of for people with long-term capital positive aspects as much as Rs 1.25 lakh from listed equities.
The administration has included alterations relating to deductions below sections 80C, 80GG and others, while introducing a dropdown menu within the utility for tax filers to select from.
Moreover, taxpayers should now present detailed section-wise info regarding their TDS deductions within the ITR.